1. About RightShip Port Interaction May 2013

2. 1,886 vessel casualties 3,198 detentions – 300,552 detained hours – 358 vessels detained more than once 2,219 global class withdrawal records More than 1 billion tonnes of CO 2 emitted from shipping Near record volumes of new deliveries Backdrop of global economic uncertainty Good Reasons to Vet - 2011

3. Who is RightShip? Star Ratings – What do they mean? SVIS Explained Proposal GHG Emissions & Shipping Live System Demonstration Agenda

4. Independent company formed in Oct 2001 Melbourne, London & Houston 200+ Customers globally Ship Vetting & Risk Management Petroleum & Dry Cargo Vetting Service Environmental Rating & CO 2 Benchmarking Worldwide dedicated vetting specialists Former serving Masters and Chief Engineers Award winning proven system ISO9001 and ISO27001 Certified About Rightship

5. RightShip Port & Terminal Customers Utility Ports &Terminals Regulator Charterer Insurance Petroleum Ship Broker Ship Owner

6. Star Ratings – Explained

7. Star Ratings – What do they mean? Indicate a detailed review of the vessel is required including a physical inspection of the ship and/or an audit of the vessel and its management systems Indicates further review of the vessel is required by RightShip Typically User Approved

8. Data Sources  IHS Fairplay Data  Lloyd’s List Intelligence  Clarksons Hatch Load  P&I Club information  Office of Foreign Asset Control (OFAC)  EU & DFAT Banned Vessels  Paris MoU Banned Vessels  USCG Banned Vessels  IACS Class withdrawal information  Green Award  Environmental Protection Agency Data (AUSMEPA, HELMEPA & NAMEPA)  International Transport Workers' Federation Blue Card Data  Global PSC Inspection & Detention data o Australian Maritime Safety Authority o US Coast Guard o Black Sea MOU o Caribbean MOU o Indian Ocean MOU o Mediterranean MOU o Paris MOU o Riyadh MOU o Tokyo MOU o Vina Del Mar

9. Ship Vetting Information System – Section 1: Calculated Risk Profile For each risk parameter a vessel is assigned (independently) into one of the following risk categories: Low Risk (LR – 10 points) Low Medium Risk (LMR - 8 points) Medium Risk (MR – 6 points) Medium High Risk (MHR – 4 points) High Risk (HR – 2 points). Once matrixed (instantaneous) the columns are totalled and a base score is generated. Note: RightShip Inspection – up to +15 points Green Award – bonus +15 points Intercargo Vessel – bonus +5 points

10. Ship Vetting Information System - Section 2: Rating Adjustments Further adjustments are made to a vessel’s score to reflect the differing standards in operational and management control impacting its risk profile. The relative performance of outside influences, such as Class Societies and Ship Size, are also used as a measure in refining the vessels overall rating. These adjustments are added to the total calculated score (Section One) and may be positive or negative.

11. Ship Vetting Information System - Section 3: Other Factors Other Factors represent a specific set of issues/events related to a vessel’s performance as observed by third parties. Typically Other Factors will reduce a vessel’s Star Rating below the automatic approval threshold. If more than one factor is applicable, the most severe restriction will be enforced.

12. Ship Vetting Information System - Section 4: Rating Calculation A vessels score is derived by simply summing the totals of the previous sections paying due regard to any limiting factors and adjustments. In this case, the overall risk ranking of the vessel would be 2 star but for the recent PSC detentions. To make our vetting recommendation, RightShip would request an inspection be conducted and seek to close out the PSC issues with the Owner/Manager directly (Corrective and Preventative action plans).

13. Is Poor Performance Predictable?

14. Unsystematic Risk Gap

15. GHG Emissions & Shipping

16. Framing the Opportunity

17. CO 2 Emissions Emissions (Gigatons CO 2 ) Data Source: Second IMO GHG Study (2009)

18. The Problem with the Relative Efficiency of the Existing Fleet

19. Basis of Comparison

20. Let’s Compare

21. Bulk Carriers 75,000 - 80,000dwt vs Reference Line (1990 – 2012)

22. Bulk Carriers 75,000 - 80,000dwt vs Reference Line (2007– 2012)

23. Compliance vs Efficiency 2007 – 2012 (Tankers)

24. Complementary Vision

25. How charterers use the tool Part Four

26. Chartering customers are onboard and supportive Developed in response to customer demand Ten RightShip customers factor in energy efficiency into chartering selection process when vetting o together they ship 1 billion+ tonnes of cargo o represents around 18% of global non-containerised shipments o around 15,000 vessel movements annually Early adopters have significant first mover advantage Feedback has been very positive o reduced shipping costs through reduced bunkers o enhanced reputation through focus on sustainability o supports company sustainability objectives

27. How customers factor it into their selection process Vessel can be denied : Vessel warning :

28. Bypass incumbent barriers to free information flow Informed Decisions Vessel A Vessel B

29. How Ship Owners use the tool Part Five

30. Financial benefits o incentive provider to Environmental Ship Index o Port Metro Vancouver provides a 35% port fee discount to vessels with an EVDI™ of A, B or C o More likely to be selected by charterers who factor CO ₂ efficiency into their vtting process o potential for lower insurance premiums o easier access to bank finance o payback period for retrofits and upgrades can be as little as six months Reputational benefits o Newer is not always better Ship Owners: Make Money in a Tough Market

31. Reputation Benefits

32. Reputation Benefits – Sample Fleet

33. Benefits

34. Systematic risk and sustainability evaluation on 71,000+ vessels (19,500 tankers) & 121,000+ companies; Off the shelf access to proven system and experienced vetting personnel; Continuously developing web based support tool to facilitate decision process - 24hours a day, 7 days a week; A full audit trail to substantiate vessel selection including a detailed feedback mechanism; and Customizable interface and suitability calculation with the ability to integrate legacy data and historical vetting decisions Benefits to Ports

35. Identify high risk vessels prior to their arrival, Increased shore-side involvement & situation awareness, Targeted PSC inspections, Allocation of extra tugs / other strategies, or Declined permission to enter the shipping channel entirely. Targeted Intelligence - Operational Reality

36. Questions Email: vetting@rightship.com Take me to SVIS™